Billing Optimization business expense management Consulting Cost Management Cost Savings

Why It’s Important that EVERYONE Understands Vendor Agreements

A team mentality must be brought to the contract development and negotiations phase. In too many companies, outsourcing contracts are left to purchasing, legal, and senior executives, then assigned to the managers and staff who will be working with the vendor on a day-to-day basis.

Operational staff and process owners don’t always understand the complexities of the initial contract. It is signed and filed – end of story. However, the question remains… is the contract still measured for performance, ensuring nothing which is critical during the life of the contract has been overlooked or omitted?

Management teams can deal with hundreds of contracts at once, so it is easy for a contract term, condition, or renewal to slip through the cracks.

Here’s the nightmare. Imagine working months or years, ushering a deal through the process, only to miss the renewal and miss out on the revenue reduction that comes with it. That revenue has been forecasted from the beginning of the contract cycle, so now operations and finance need to go back and adjust their numbers to reflect the loss. This is not only time consuming, but also carries no guarantee the vendor will honor the rate reduction now or in the future.

On a day-to-day basis, your managers oversee all aspects in relation to your company’s contracts. With so many moving parts in your fast-growing organization, managing these contracts can become a real problem if you are not equipped with the right tools.

Many companies ARE getting ahead of this problem by finding a partner with the tools and expertise to manage the details, as it relates to local, regional, or even national service-related costs. They need a partner they can trust, that will do the benchmark analysis on every single vendor, ensure bills get paid on time and services providers aren’t taking advantage of you, and actively renegotiate for lower pricing and better T&Cs, ultimately resulting in the elimination of “spend fat” and a more strategic use of budgets.

A fully managed vendor management solution simplifies contract management lifecycles, making it easier on your staff, compliance team, and legal department. This IS what our team at Limitless does All Day and Every Day. We take this burden off of your people so they can focus on the bigger problems. Plus, we partner with each member of your team, so they feel confident that they can maintain the overall control and don’t lose the vendor relationships they value, but DO gain the critical support they need to make better decisions. The support we provide allows your team to focus on the more important work of ensuring occupancy rates, delivering exceptional resident experiences, and growing their business and market share.